There are various segments of share market in which traders can trade. Different people have a different choice when it comes to trading. One of the most beneficial trading segment is day trading. In trading, anyone can be a successful trader, but most people who enter the world of trading fail as they do not have the discipline and patience to practice a strategy till the time those strategies produce a consistent profit. They switch to another strategy and they fail. However, there is high risk in day trading but the following are certain benefits of day trading comparing to positional trading. Therefore, all the novice traders are warned before that they will not become successful overnight, but still, many traders do not actually believe that.
But it is seen that day trading is becoming more popular option than any other segment of trading amongst young people. The reason is that the market can fluctuate 5 to 10 percent overnight so it may happen that on the next day your stock is at such a low level that wiped off ten days profit. But in day trading, there is no such risk and you can sleep well.
On the other hand, it is said that 90% or 95% of traders lose money or some other seemingly high statistic. This statistic is very high but it is accurate. The reason for failure is that people do not stick to the one-time horizon. You must keep in mind that sticking to the one-time horizon is the basic principle of trading. A trader must define their time horizon and must ensure that they close out their positions by end of the day if they are a day trader, as a loss-making position carried into the next trading day will go into more losses. Being a long-term trader, you must not close out loss-making trades the next day.
Another important reason for being an unsuccessful trader is that you are not disciplined in executing day trading strategies. Never think that you cannot try out Intraday trading on your own. Always learn from your mistakes and never risk more than 2% of your trading capital on every trade. The study proves that no one will go bust in trading if they trade with proper risk management.